The Leaders of Sustainable Biofuels (LSB) is an organization aiming to promote the development of second generation advanced biofuels in Europe. The LSB group is composed by the Chief Executive Officers of the leading European biofuel producers and European airlines: UPM, British Airways, Biochemtex, BTG, Chemrec, Clariant, Dong Energy and St1 Biofuels Oy have joined forces to ensure the market uptake of advanced sustainable biofuels by all transport sectors. LSB also engage with various stakeholders to ensure the opportunities of advanced biofuels are recognized.
The Leaders of Sustainable Biofuels believe that second generation, advanced biofuels represent one of the major industrial opportunities today for Europe in the sustainable energy technology field. The world is taking action to reduce greenhouse gas emissions and advanced biofuels are a key part of the solution, because they do not compete with food and have considerably lower environmental impact than fuels made from petroleum oil or natural gas. The Leaders of Sustainable Biofuels are determined in stimulating the EU policy towards accelerated industrial research and innovation into emerging biofuel technologies supported by public and private policies promoting deployment.
Significant advanced biofuel production could be deployed today provided that a policy and regulatory framework enabling long-term investment is implemented. Marko Janhunen, Chair of LBS and Vice President, Stakeholder Relations, UPM Biorefining states: “The coming year will be critically important for the industry as important legislation is under preparation in the European Union. The renewal of the renewable energy directive (ILUC) will be debated in the newly elected European parliament, member states will discuss EU policy for post 2020 and preparations for global climate negotiations are underway for United Nations Climate Change Conference in Paris 2015.”
Now is the time to act and release the investment lock
LSB welcome the Council political agreement on biofuels and the political agreement on ILUC but urge for more rapid commitment and action from European Union Member States. According to LSB, the Council of ministers have taken an important but small step forward in order to create certainty in the biofuels markets. It has taken almost two years of discussions while the industry has been putting future investments in the low carbon fuel industry on hold. Now member states have agreed on an important, but vague, compromise on the renewal of the renewable energy directive and the fuel quality directive. LBS believes that the advanced biofuels mandate is essential to ensure investment decisions are made in Europe. Now the targets have been diluted to non-binding but hopefully the final directive will in the end ensure regulatory certainty for the sector. The revision of the directive should be finalised during the upcoming Italian presidency, and the EU member states must agree in the October Council meeting on a progressive and binding continuation of the advanced biofuels mandate beyond 2020”, state the LSB.
Advanced biofuels offer unique opportunities for the European economy and the environment. Advanced biofuels can offer jobs in rural areas of Europe, and build credible and concrete investments in the European bioeconomy. In order to secure investments to move forward, the EU must agree on a clear pathway for the advanced biofuels up to 2020 and beyond. Many member states already recognise the benefits of advanced biofuels and have set, or are about to set, demanding national targets. However, European union needs to show leadership now and agree on a European-wide strategy.
Building European energy independence
The Ukraine crisis shows once again to what extent the EU relies on energy imports at a daily basis: Today, the EU imports 53% of the energy it consumes. Approximately 90% of our crude oil and nearly 66% of our natural gas comes from 3rd countries. The transport sector is no exception and 95% of the EU fuel consumption is still based on fossil fuels. The EU spends more than 1 billion € per day to pay its external energy bill. Thus, the transport sector has a large and growing share in the final energy consumption as well as large CO2 emissions. That coupled with an increased dependency of the EU on imported fossil oil is alarming.
The Commission has declared commitment to promote sustainable biofuels and to reduce GHG emissions in transport by 60% by 2050. However, the lack of binding energy and climate targets for the transport sector in the European Commission’s White paper on the framework for EU’s climate and energy policy 2020-2030 is a concern for LSB. The European Commission must not close its eyes on this reality: The contribution domestically produced advanced biofuels can make to curb Europe’s dependence on rapidly depleting and polluting fossil fuels. Produced from European-grown raw materials, advanced biofuels not only reduce our dependence on external energy sources but achieve a GHG saving of up to 95% compared to fossil fuel. It makes advanced biofuels even more climate friendly than the much touted electric cars, especially if well-to-wheel analysis instead of tank-to-wheel calculation is used for both.
The Communication on Energy Security comes at a time when the future of European energy and climate policy as well as the biofuels policy in particular are at stake. If EU leaders do not recognize the potential of advanced biofuels and adequately promote their deployment, investments will move to other regions in the world where the framework conditions are more favourable. EU Member States will lose precious opportunities for creating new jobs and generating added value especially in rural areas and agriculture through the promotion of EU-based industrial development and innovation.
It is time for the EU to put its cards on the table: Do we want to stay dependent on polluting fossil fuels or do we want to harvest the potential of innovative biofuels technologies? The choice seems obvious and this is why LSB urge the EU to set a binding, ambitious and realistic target for advanced biofuels in 2020 and up to 2030 with a clear trajectory.
